Mayo Clinic 2022 Expenses up $1 Billion – Net Income Dropped 53%
Rochester, MN (KROC-AM News) - Mayo Clinic's bottom line took a hit last year as expenses increased by more than $1 billion.
The Rochester-based healthcare provider's annual report shows its income from current activities, which is its best indicator of economic performance, plummeted from more than $1.3 billion in 2021 to just over $640 million in 2022. That remains a healthy 3.7% margin, but it is down about $725 million or 53% from the previous year.
A required federal regulatory filing shows Mayo Clinic's overall revenues increased last year by $454 million and exceeded $16.3 billion. On the other side of the ledger, Mayo's expenses reached nearly $15.7 billion, which was up close to $1.2 billion from 2021.
About half of the increase in expenses was tied to salaries and benefits. The regulatory report shows those costs grew by $509 million and totaled almost $9.2 billion last year. The cost of supplies and services jumped up by $610 million to almost $5.4 billion, which works out to a nearly 12.8% increase in one year.
Mayo Clinic's return on investments modestly improved in 2022. Mayo's portfolio was able to provide about $250 million for operations last year compared with $217 million the previous year despite a net loss of almost $1.4 billion, which nearly erased the more than $1.4 billion gain on investments that was enjoyed by the healthcare provider in 2021.
In its annual report, Mayo Clinic also listed a number of other statistics related to its operations. Mayo reported hiring 17,000 new employees last year. His overall workforce has grown to more than 76,000, including about 5500 physicians and scientists. 42,000 of Mayo Clinic's staff members work in Rochester and another 15,000 are employed by the Mayo Clinic Health System.
Mayo Clinic also invested $1.2 billion in various capital projects in Rochester, Arizona, Florida, and the communities where the Mayo Clinic Health System operates. According to the documents, capital expenditures increased 27% from 2021.
Mayo Clinic reported caring for about 1.4 million patients last year from every US state and nearly 130 other countries. About 6700 international patients sought out care at Mayo Clinic, which performed more than 141,000 surgeries and recorded nearly 5 million outpatient visits. 1858 solid organ transplants were performed by Mayo Clinic, along with more than a half-billion telemedicine appointments.
Mayo also invested $1 billion in research last year, with over 5000 of its employees involved in research activities. Those activities included over 1500 clinical trials conducted by Mayo Clinic.